The Construction Economist — July 6, 2026

Construction job openings hit a 10-month high · May spending inches up · USMCA heads to annual review · DOE pulls decades of energy-code findings · Digital Realty's $3.5B Virginia buy

Top News

Construction job openings rise to a 10-month high in May as hiring stays historically slow

Associated Builders and Contractors · ~3 min read

The construction industry had 298,000 job openings on the last day of May — up 32,000 from April and 76,000 from a year earlier, and the highest count since July 2025 — according to an Associated Builders and Contractors (ABC) analysis of Bureau of Labor Statistics JOLTS data. ABC Chief Economist Anirban Basu said the increase "likely reflects exceptional demand for certain occupations critical to data center buildouts, like electricians, rather than increased industrywide demand for labor." The hiring rate fell sharply to 3.5%, matching February's all-time low, while layoff activity rose and the quit rate fell.

What it means: Openings measure advertised demand; hires measure what the market actually absorbs — and the two are pulling apart. Data-center work is bidding for scarce specialty trades while the rest of the industry sits tight: layoffs up, quits down, hiring at a record low means workers are staying put and employers outside the boom are holding headcount, not adding it. If your pipeline needs electricians or mechanical trades, plan for longer fills and wage pressure; for everyone else, the labor market is looser than the openings number suggests. Watch whether the hiring rate moves off 3.5% in the June print.

Construction spending inches up slightly in May

ENR · ~3 min read

Overall U.S. construction spending edged up in May, according to Census Bureau data reported by ENR, though spending in many sectors declined year over year. Private residential construction rose 0.3% to a seasonally adjusted annual rate of $930.2 billion — a third consecutive monthly gain, led by remodeling.

US blocks quick USMCA extension, putting annual review process into motion

Supply Chain Dive · ~2 min read

The United States declined to fast-track an extension of the USMCA trade agreement, triggering the pact's annual review process. The U.S., Mexico, and Canada will continue negotiating potential adjustments to the trilateral free trade agreement, which remains in place until at least 2036.

Materials & Supply Chain

US manufacturing expands again in June, but at a slower rate than in May

Supply Chain Dive · ~2 min read

U.S. manufacturing expanded again in June, though at a slower pace than in May, and the overall economy grew for the 20th consecutive month, per the Institute for Supply Management's monthly survey. Manufacturers cited the Iran war and price volatility as ongoing concerns.

Policy, Codes & Regulation

DOE removes decades of federal findings on energy codes, drawing ICC criticism

International Code Council · ~2 min read

The U.S. Department of Energy on June 26 removed longstanding analysis underpinning nearly three decades of federal findings on energy codes. The International Code Council, which publishes the model codes adopted across most U.S. jurisdictions, publicly criticized the reversal.

Federal appeals court upholds New York's gas appliance ban

NAHB · ~2 min read

The U.S. Court of Appeals for the Second Circuit on June 30 upheld New York City and New York State laws restricting the use of gas-powered and other fossil-fuel-powered appliances in new construction. The ruling leaves both measures in force for new residential and commercial projects in the state.

Project Finance & Economics

Digital Realty acquires Blackstone's stake in three Virginia data centers for $3.5 billion

Data Center Dynamics · ~2 min read

Digital Realty is acquiring Blackstone's stake in three Virginia data centers for $3.5 billion, taking full ownership of 288 MW of capacity, according to Data Center Dynamics. The facilities are fully leased to three clients.

International Markets & Megaprojects

Dubai selects teams for key contracts of $22B sewer tunnel megaproject

ENR · ~2 min read

Dubai's government has selected two consortia for key contract packages in the Dubai Strategic Sewerage Tunnels project, a $22 billion public-private venture to modernize the emirate's wastewater handling and treatment infrastructure. The awards move one of the world's largest tunneling programs into its delivery phase.

The Construction Economist — What's Moving Construction? The Economic Look-Ahead.